About Loral Space & Communications

Loral Space & Communications Inc., together with its subsidiaries, operates as a satellite communications company that engages, through its ownership interests in affiliates, in satellite-based communications services. Satellite Services The company participates in satellite services operations primarily through its ownership interest in Telesat Canada (Telesat), a major global satellite operator. Telesat provides its satellite and communication services from a fleet of satellites in geosynchronous (GEO) orbit that occupy Canadian and other orbital locations. Telesat is also developing a planned global constellation of low earth orbit (LEO) satellites known as ‘Telesat Lightspeed’. The company held a 62.6% economic interest and a 32.6% voting interest in Telesat as of December 31, 2020. Telesat’s GEO Satellite Business Telesat owns and leases a satellite fleet that operates in geostationary orbit, approximately 22,000 miles above the equator. As of December 31, 2020, Telesat provided satellite services to customers from its fleet of 15 in-orbit geostationary satellites and the Canadian Ka-band payload on the ViaSat-1 satellite. Telesat provides video distribution and direct-to-home (DTH) video, as well as end-to-end communications services using both satellite and hybrid satellite-ground networks. Telesat’s GEO satellite fleet offers global coverage with a concentration over the Americas. Telesat is a major provider in the North American satellite video distribution market. Telesat’s GEO satellite fleet and ground infrastructure provide a platform supporting strong video distribution and DTH neighborhoods in North America with blue chip customers and significant contracted backlog; and connectivity satellite services for customers around the world for backhaul, corporate networks, maritime and aero services, and video distribution and contribution. Telesat offers its suite of GEO satellite services to more than 400 customers worldwide, which include some of the world’s major DTH service providers, ISPs, network service integrators, telecommunications carriers, corporations, and government agencies. Telesat Lightspeed Telesat has commenced the development of advanced constellation of LEO satellites and integrated terrestrial infrastructure, called ‘Telesat Lightspeed’ — a platform designed to revolutionize the provision of global broadband connectivity. LEO satellites operate in a circular orbit around the earth with an altitude typically between 500 and 870 miles. Telesat Lightspeed has been optimized to serve the broadband connectivity requirements of fixed and mobile network operators, aeronautical and maritime users, enterprise customers and governments. Telesat expects to begin launching the first Telesat Lightspeed satellites in approximately two years, with customer beta testing beginning shortly thereafter and commercial services commencing in the second half of 2023. In January 2018, Telesat’s first LEO satellite was successfully launched into orbit. Telesat also installed ground infrastructure at Telesat’s teleport in Allan Park in Canada to support testing with a variety of existing and prospective customers and potential suppliers of the Telesat Lightspeed system hardware who have been participating in trials since the second half of 2018. In February 2021, Telesat announced that Telesat entered into an agreement with Thales Alenia Space (TAS) to be the prime manufacturer of the Telesat Lightspeed constellation and that TAS and its affiliate Telespazio have made a Lightspeed capacity commitment in connection with the agreement. In February 2021, Telesat announced that it had selected MDA Communications Holdings, Inc. to manufacture the phased array antennas to be incorporated into the Telesat Lightspeed satellites. Telesat Services Telesat earns the majority of its revenues by providing satellite-based services to customers who use these services for their own communications requirements or to provide video and data service solutions to customers further down the distribution chain. Telesat also earns revenue by providing ground-based transmit and receive services, selling equipment, installing, managing and maintaining satellite networks and providing consulting services in the field of satellite communications. Telesat derives revenues from the following services: Broadcast Telesat’s broadcast customers include North American DTH providers Bell TV, Shaw Direct, DISH Network and major telecommunications and media firms, such as Bell Media and NBC Universal. These services include: DTH: The two major DTH service providers in Canada (Bell TV and Shaw Direct) exclusively use Telesat’s satellites as a distribution platform for satellite-delivered television programming, audio and information channels directly to their customers’ homes. In addition, two of Telesat’s satellites are used by DISH Network for DTH services in the United States. Video Distribution and Contribution: Broadcasters, cable networks and DTH service providers use Telesat satellites for the full-time transmission of television programming, distributing content around the globe. Additionally, Telesat provides certain broadcasters and DTH service providers bundled, value-added services that include satellite capacity, digital encoding of video channels, authorization services and uplinking and downlinking services to and from Telesat satellites and earth station facilities. Occasional Use Services: Occasional use services consist of satellite transmission services for the timely broadcast of video news, sports and other live event coverage on a short-term basis, enabling broadcasters to conduct on-the-scene transmissions using small, portable antennas. Enterprise Telesat’s enterprise customers include Bell Canada, BT, Cable & Wireless Communications, Claro S.A., Embratel, Global Eagle, Gogo, Hughes Network Systems, iForte, Leidos Innovations, Marlink, Northwestel, NSSL Global, OmniAccess, Orange, Panasonic, Speedcast, SSI Micro, Suncor Energy, Telefonica, Telenor, Telespazio, ViaSat and Xplornet. These services include: Telecommunication Carrier and Integrator Services: Telesat provides satellite capacity and end-to- end services for data and voice transmission to telecommunications carriers and integrators located throughout the world. These services include space segment services and terrestrial facilities for enterprise connectivity, internet backhaul, cellular backhaul and services, such as rural telephony to telecommunications carriers and network services integrators around the world. Maritime and Aeronautical Services: Telesat provides satellite capacity to customers serving the maritime and aeronautical markets, bringing broadband communications services to commercial airplanes and vessels. Government Services: Telesat provides services to the United States government, including through government service integrators. Telesat is also a significant provider of satellite services to the Canadian government. Direct-to-Consumer Broadband Services: Telesat provides satellite capacity to Xplornet in Canada, to ViaSat in the United States, and to HNS in South America, who each, in turn, use it to provide two-way broadband internet services directly to consumers. Retail Services: Telesat operates satellite and hybrid satellite/terrestrial networks that support retail activities in Canada, including point-of-sale and other applications. These services include installation and maintenance of the end user terminal, as well as the provision of satellite capacity and other network elements. Resource Services: Telesat provides communications services to geographically diverse locations, both on and off shore, for the oil and gas and mining industries. Satellite Operator Services: Telesat provides satellite services to other satellite operators when they do not have adequate capacity to meet their customers’ needs. Telesat also, on occasion, will relocate one of its end-of-life satellites to the orbital location of another satellite operator on a short-term basis so that they can preserve their spectrum rights at that location. Consulting and Other Telesat is a major consultant in establishing, operating and upgrading satellite systems worldwide. Telesat’s consulting customers have included Airbus, Lockheed Martin, MDA Geospatial Services, Mitsubishi Electric, The Defense Advanced Research Projects Agency, and ViaSat, as well as many regional satellite operators around the world. Strategy The company’s strategy is to leverage its longstanding customer relationships, deep technical, operating and regulatory expertise and culture of outstanding customer service and continuous innovation. The key elements of the company’s strategy are to follow a disciplined GEO satellite operating and expansion strategy; capture the explosive demand for global broadband connectivity with Telesat Lightspeed; leverage valuable spectrum rights to support investment in growth initiatives; and opportunistically engage in merger and acquisition activity to enhance competitive position and shareholder value. Satellite Fleet and Ground Resources Telesat’s satellite ?eet consists of 15 geostationary satellites offering global coverage with a concentration over the Americas. Telesat also has one LEO satellite, LEO1, in polar orbit. Telesat is evaluating mission extension services that have the potential to prolong the orbital maneuver lives of certain of its satellites. In addition, Telesat has rights to satellite capacity on other satellites, including the Ka-band Canadian payload consisting of nine user beams on ViaSat-1. Telesat operates an extensive ground infrastructure, including a satellite control center (SCC) in Ottawa, Ontario, its main earth station and backup SCC at Allan Park, Ontario, nine earth stations throughout Canada, one teleport located in the United States and one in Brazil. These ground facilities are used for controlling Telesat’s satellites and for the provision of end-to-end services to Telesat’s customers. Other The company owns 56% of XTAR, LLC (XTAR), a joint venture between the company and Hisdesat Servicios Estrategicos, S.A. (Hisdesat) of Spain. In July 2020, the company, XTAR and Hisdesat restructured their relationship, including Hisdesat purchased the Satellite and certain assets related to operation of the Satellite (the ‘Purchased Assets’) from XTAR; XTAR’s agreement with Hisdesat to operate the Satellite at the Orbital Slot was terminated and the rights and licenses to operate the Satellite at the Orbital Slot reverted to Hisdesat; the Transponder Lease was terminated; XTAR and Hisdesat entered into an agreement under which XTAR will continue to market and sell capacity on the Satellite and on the Spainsat satellite; XTAR and the company terminated the company’s Management Agreement; and the company granted to Hisdesat an option to acquire for nominal consideration, subject to receipt of all required regulatory approvals, its membership interests in XTAR. This option has not yet been exercised by Hisdesat. Intellectual Property As of December 31, 2020, Telesat owned 23 issued patents, four of which are in the United States of America (U.S.). These patents expire between 2025 and 2039. Telesat also has several pending domestic and international patent applications. Foreign Operations Telesat’s revenues from customers in Canada, the U.S., and other geographical regions, primarily Europe, the Middle East and Africa, and Latin America and the Caribbean. Regulation Telesat is subject to regulation by government authorities in Canada, the United States and other countries in which it operates and is subject to the frequency coordination process of the International Telecommunication Union (ITU). Telesat is a Canadian carrier under the Telecommunications Act (Canada) (the Telecom Act). The Telecom Act authorizes the Canadian Radio-Television and Telecommunications Commission to regulate various aspects of the provision of telecommunications services by Telesat and other telecommunications service providers. Telesat’s operations are also subject to regulation and licensing by the Department of Innovation, Science and Economic Development Canada pursuant to the Radiocommunication Act (Canada). The Brazilian national telecommunications agency, ANATEL, has authorized Telesat, through its subsidiary, Telesat Brasil Capacidade de Satélites Ltda., to operate fixed satellite service satellites at the 63° WL orbital location. Telesat owns and operates the portion of the ViaSat-1 satellite (115° WL) payload that is capable of providing service within Canada. ViaSat-1 operates in accordance with a license granted by the Federal Communications Commission in the United States. However, by virtue of an intergovernmental arrangement between the United States and the United Kingdom, ViaSat-1 operates in accordance with ITU networks filed by the United Kingdom regulatory agency, OFCOM, on behalf of the Isle of Man. Telesat has been authorized by its ITU filing administrators (Canada, the U.S., Brazil, the United Kingdom and Northern Ireland) to use certain frequencies. In addition, through commercial arrangements, Telesat has the right to use certain frequencies for which the Kingdom of Tonga has the rights. History Loral Space & Communications Inc., a Delaware corporation, was founded in 1996.